Changing practices and cost-cutting measures in the banking sector have not yet been priced into the...
Changing practices and cost-cutting measures in the banking sector have not yet been priced into the market, creating opportunities for fund managers. The refocusing of high street banks' lending activities to target higher margin, longer-term consumer business and move away from higher risk, lower margin, large-cap corporate lending is enabling the sector to improve profitability despite poor market conditions. Lance Phillips, an investment director at Standard Life Investments, says: 'The fact long-term interest rates are higher than short-term rates has made lending to consumers ...
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